Going in you think you’ll specialize in one type of investment. Then are you going to pass up every good deal that comes your way that’s not a mobile home? If you are watching your market and learning value, once you feel confident you would know a bargain when you find or create it, do the deal that fits your financial, experience, and risk tolerances. Be flexible. Last few days I’ve been thinking I have about all I can handle as far as management and repairs/renovation. Moving money to land/home sales and tillable farm land starting to make sense. So what happens? In 24 hours am contacted by 2 sellers with fixer parks to sell. Here we go again.
I’m halfways through “Deals On Wheels.” I started reading it today. The more I research mobile home investing the more lucrative it appears. I plan on taking action very soon, developing a stream of lonnie deals income, and then finding some land/home deals…although if I see an opportuinity with them at any time I’ll take it seriously.
I came to this site because I was very interested in investing in real estate in the form of flipping or rehabbing stick built homes. I stumbled onto the mobile home niche and now I can’t really see why people would head the route of stick built, at least not right away in their career.
I was just wanting a comparison from a person that has had experience in both types of investing.
Is rehabbing or flipping stick builts as easy to keep the money coming in? It just seems like the deals would be a lot harder to find and way more complicated. I’m not heading in that direction for now anyways, but as I read more about mobile home investing the question just kept coming to mind wondering as a person who has no experience yet, why would someone do the regular housing deals when mobile homes require minimal capital, risk, etc…?
Posted by Anne_ND on January 25, 2005 at 10:37:11:
Zach,
I have done both, and both have their advantages.
Some people who do SFHs are satisfied with getting a yield of 20% on their investment of $40K (or whatever). Typically I get a much higher yield (over 50%, sometimes as high as 990%) but I’ve only invested $200 of my own money. I have to really hustle to invest more money at that high rate.
I like both kinds of investing, but feel that there’s less at risk with MH investing.
Anne
PS- I’ve now used the ick factor to my advantage, but it definitely was an issue for me starting out. And the reaction of my family when I told them I wanted to buy a mobile home park was comical.
Posted by ScottS(NC) on January 22, 2005 at 19:40:35:
Zach,
All of your observations are dead on in my opinion. I believe it comes down to prestige. Folks who own a portfolio of stick built rentals are looked upon more favorably than a portfolio of Lonnie notes or rental mobiles. Some people are making great money with Stick-built but competition is fierce. On the other hand the “Ick” factor of mobiles keeps our market very profitable and competition low. My .02, Take Care ScottS(NC)
Thanks for the advice, I can tell there is an ick factor here because I’ve even spoken with family members about me doing this and they tell me to be careful and look at it from all angles. That in itself is correct but you can tell they’re thinkin…oh no…what’s he getting into. But as long as it works who cares what anyone thinks.